Ethical Decision Making Regarding Tenant Choice

[Carrie Hallensleben]

We have our former home on the market for rent. Since it is updated and in a very desirable neighborhood and school district, there has been a lot of interest. I'd love some advice about making a decision to accept one applicant over another. Currently we have two highly qualified applicants -excellent credit, job security, income, etc. 

One is a family that is having a home built which will be done in a bit short of a year if all goes as planned and offered to pay $100 more in rent per month to lease for 10 months and then month to month after that until the home is complete. They already have their children living in the school district and their new home is very close to this rental. 

The other family is moving from another state and has to make a decision today on where to send the movers. They have not seen the place but still want to sign a lease for a year. Husband has been transferred and they will look for a lot to start building a home after they get settled. 

My intuition is to go with the family that lives in the area already and has looked at the home but since they are willing to pay more in rent, I'm not sure if that is an ethical decision. Both candidates applied on the same day so that doesn't give either an advantage. 

I'd love any advice. Thanks in advance!

Carrie

[James Mc Ree]

I don't see an ethical issue.  I see a business choice.

The driving factor in my mind is the vacancy you will incur after either term.  Tenant A for 10 months will result in vacancy starting approximately June(ish).  Tenant B for 12 months, if they move out then, will be a vacancy maybe starting Sep 1.  That is a less favorable time for finding a new tenant.  On this point, I would give a point to tenant A.  Try to get a feel for tenant B moving out in 12 months.  A term ending in March/April is probably preferable.  You have a chance of longer vacancy with tenant B - maybe a point for tenant B on that point, especially if the term is extended.

Does the additional $100/mo over 10 months add up to what you were asking for a year?  It might be unreasonable to expect that, but not necessarily a bad idea to ask.

You have a wonderful problem - 2 highly qualified tenants.  They don't seem radically different.

Jim.